It doesn't matter if you are a day trader, swing trader, or even a long-term investor you can still find the market top in any stock or investment vehicle the easy way. If you ask other traders they will say, "Finding the top in any market is like finding a needle in a haystack." But don't let that deter you. You and I can both find the market top if we know what we are looking for.
Finding the top in the stock market can be found if you can clearly determine if the overall trend is to the upside. In the stock market, trends are more likely to continue than fail and reverse. Treat the trend as your friend. It will lead you to safety when it breaks. Reference: SPY Weekly Price Chart)
You and I can clearly see on the chart above that the SPY (S&P 500) is clearly in a defined uptrend. This trend started all the way back to 2008-2009.
Utilizing the chart above we can see that the S&P 500 made a top during the month of October 2018 and currently this index has not seen a market top above the October 2018 highs. This is only have of the story.
The next part of the story is the volume and what it means. You can clearly see from the chart above that there were two major spikes of volume during 2018. The first occurred during the month of February 2018. The second occurred in December 2018. Considering that this high volume occurred at the top of the trend symbolizes that some traders were taking profits; an indication that the top could be in.
Obviously, we are in the early stages of truly knowing if we have called the top in the S&P 500. But we are definitely seeing changes occurring that indicates we may have in fact seen the top in the market.